Nationally, the typical household would need to earn $99,000 to buy a median-priced home of $415,500 in February, according to the most recent Realtor.com® data.
This also accounts for property taxes and insurance costs, and assumes a 10% down payment.
“For many people who want to buy a house, it’s just not feasible right now,” says Realtor.com senior economic research analyst Hannah Jones.
“Even for households that can afford a home, the monthly cost is going to be much higher than it was two, three, four years ago.”
That’s because home prices have surged since the COVID-19 pandemic and mortgage rates went from the mid-2% to the high 6% range.
In 23 states, buyers needed to earn at least $100,000 to avoid paying more than 30% of their gross income on housing.
